(DP 1989-16) Debt or Development: Philippine Imperatives and The Conventional Strategy for Debt Management

Abstract

Conventional debt strategy claims to be growth oriented. This paper argues however that effectively, growth is treated as a residual after debt service requirements are met. This is borne out by results of Philippine negotiations with the IMF in 1986 and 1988. Owing to this, the prospects for achieving the countrys development targets over the medium-term are dim. Current debt conversion schemes and the Philippine Assistance Plan may bring only negligible benefits to the country at best.